Capitaline

Results 29-Jul-21

Analysis

Mahindra Logistics

Strong performance amid challenging external environment

Consolidated net sales (including other operating income) of Mahindra Logistics for the quarter ended Jun 2021 has increased 113% to Rs 873.36 crore. With operating profit margin stand at 5.2% (compared to negative 0.5% in corresponding previous period) the operating profit was Rs 45.01 crore compared to an operating loss of Rs 2.22 crore in the corresponding previous period. Employee cost decreased from 17.82% to 8.14%. Other expenses rose from 82.72% to 86.71%. Freight charges rose from 80.21% to 84.81%. Other income fell 32% to Rs 1.92 crore. Provision for interest rose 36% to Rs 6.17 crore. Provision for depreciation rose 55% to Rs 28.59 crore. PBT before EO was Rs 12.17 crore compared to a loss of RS 22.38 crore in the corresponding previous period. Taxation was a provision of Rs 3.07 crore compared to a write back of Rs 5.90 crore. Thus the PAT was a profit of Rs 9.10 crore compared to a loss of Rs 16.48 crore in the corresponding previous period. Share of profit/loss from associate was nil compared to a loss of Rs 0.16 crore in the corresponding previous period. The minority interest was down 70% to Rs 0.25 crore. Thus the net profit was Rs 9.35 crore compared to a loss of RS 15.81 crore in the corresponding previous period.

Sales of Supply Chain Management segment has gone up 114% to Rs 840.07 crore (accounting for 96.19% of total sales). Sales of Enterprise Mobility Service segment rose 87% to Rs 33.29 crore (accounting for 3.81% of total sales).

Profit before interest, tax and other un-allocable items (PBIT) has jumped 195% to Rs 69.07 crore. PBIT of Supply Chain Management segment rose 182% to Rs 67.90 crore (accounting for 98.31% of total PBIT). PBIT of Enterprise Mobility Service reported profit of Rs 1.17 crore compared to loss of Rs 0.67 crore.

PBIT margin of Supply Chain Management segment rose from 6.1% to 8.1%. PBIT margin of Enterprise Mobility Service segment rose from negative 3.8% to 3.5%. Overall PBIT margin rose from 5.7% to 7.9%.

Management comment

Commenting on the performance, Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, “We delivered a strong performance despite the challenging external environment due to the rapid spread of Wave 2 of the Covid 19 pandemic. The regional lockdowns, high commodity costs and fuel prices impacted demand across the end markets. Our strong focus on customer retention, new account acquisition and cost reduction helped us offset these challenges. Implementation of our strategic initiatives continued through the quarter and we anticipate a strong uptick in the economic activity in rest of the year. We have launched several initiatives to improve our preparedness for the future with employee assistance programs and vaccination campaigns. As part of the relief program, the Company supported the “Mahindra Oxygen on Wheels” initiative to provide last mile delivery support for oxygen cylinders across the country “

Other developments

Promoters' stake was 58.31% as of 30 June 2021, compared to 58.42% as of June 30, 2020.

Mahindra Logistics : Consolidated Results
	2106 (3)	2006 (3)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	873.36	410.46	113	3263.72	3471.14	-6
OPM (%)	5.2	-0.5		4.1	4.6
OP	45.01	-2.22	LP	134.22	158.27	-15
Other inc.	1.92	2.81	-32	17.47	13.98	25
PBIDT	46.93	0.59	7854	151.69	172.25	-12
Interest	6.17	4.55	36	20.09	17.63	14
PBDT	40.76	-3.96	LP	131.60	154.62	-15
Dep.	28.59	18.42	55	89.65	73.43	22
PBT before EO	12.17	-22.38	LP	41.95	81.19	-48
EO Exp	0.00	0.00		2.75	0.00
PBT after EO	12.17	-22.38	LP	39.20	81.19	-52
Taxation	3.07	-5.90	PL	10.02	25.74	-61
PAT	9.10	-16.48	LP	29.18	55.45	-47
Share of Profit/(Loss) from Associates	0.00	-0.16	LP	-0.39	-0.61	-36
Minority Interest	-0.25	-0.83	-70	-1.21	-0.28	LP
Net profit	9.35	-15.81	LP	30.00	55.12	-46
EPS (Rs)*	#	#		4.5	7.7
* EPS is on current equity of Rs 71.71 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Mahindra Logistics: Consolidated Segment Results
Particulars	% to total	2106 (3)	2006 (3)	Var. (%)	% to total	2103 (12)	2003 (12)	Var.(%)
Sales
Supply Chain Management (SCM)	96	840.07	392.64	114	96	3144.64	3103.53	1
Enterprise Mobility Services (EMS)	4	33.29	17.82	87	4	119.08	367.61	-68
Total	100	873.36	410.46	113	100	3263.72	3471.14	-6
PBIT
Supply Chain Management (SCM)	98	67.90	24.06	182	98	237.15	252.92	-6
Enterprise Mobility Services (EMS)	2	1.17	-0.67	-275	2	3.07	33.81	-91
Total	100	69.07	23.39	195	100	240.22	286.73	-16
Less: Interest (net)		6.17	4.55	36		20.09	17.63	14
Less: Others Un-allocable Exp/Income (net)		50.73	41.22	23		180.93	187.91	-4
Add: EO
PBT		12.17	-22.38	-154		39.20	81.19	-52
Note: Figures in Rs crore
Source: Capitaline 2000

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